COVID-19 Update: Underwriting and Grace Period Changes

July 23, 2020

As we all adapted to the COVID-19 pandemic earlier this year, The Standard introduced several temporary guidelines to help customers get and keep IDI. On July 31, 2020, these temporary guidelines will expire and we’ll return to our normal guidelines with one exception. We’ll continue to not require labs or exams for some applications through Sept. 30, 2020.

What's Changing

Grace Period Extension

The special grace period of 91 days will expire on July 31, 2020. Premiums due on Aug. 1 or later must be paid within the normal 31-day grace period. We’ll continue to extend the grace period for policies affected by any individual state insurance directives requiring more time.

75% Acceptance Requirement for BIR on New Business

We’re restoring the requirement that the applicant must accept at least 75% of the maximum benefit amount qualified for to be eligible for the BIR. We temporarily lowered the required acceptance amount to 50%. To qualify for the BIR with only 50% acceptance, applications must be signed by July 31, 2020 and received in the home office by Aug. 31, 2020. The 75% requirement will be in effect for all applications signed Aug. 1, 2020 or later.

BIR Renewals

On Aug. 1, 2020, we’ll reinstate our normal processes and rules for BIR renewals. Policyowners with option dates of Aug. 1, 2020 or later must submit increase option applications during the benefit increase application period. We’ll no longer automatically renew BIRs or provide 90 days after option dates to submit applications.

What's Not Changing

We understand that obtaining labs and exams can still be difficult. We won’t require labs or exams for the following applications through Sept. 30, 2020.

ProductMaximum Benefit
Platinum Advantage$10,000
Business Overhead ProtectorSM$25,000
Business Equity ProtectorSM$1,000,000

As always, we understand that some cases need extra time for underwriting or delivery requirements. Please call your case manager to discuss special requests. We’ll continue to work with you whenever possible to help get policies and increases placed.

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